When parents draft estate plans, they do not always leave the same amount of assets to every beneficiary. This is known as leaving unequal bequests, and it has been growing more common over the years. Rather than giving four children 25% ownership of the family home, for example, the parents may simply leave the entire house to the child that they believe needs it the most.
There are some benefits to this, such as being able to address direct needs or leave assets to people who will see the greatest benefit. A child with a high-income level may not need as much in the way of financial assets as a child who struggles to hold down a job, for instance. But there’s also an unfortunate downside, in that unequal bequests can lead to estate litigation.
Why does this happen?
There are many reasons why this happens, starting with the fact that siblings may simply expect things to be even and feel slighted or insulted when they are not. Perhaps there has been extensive sibling rivalry over the course of their lives. They may see the unequal bequests as evidence that their parents always loved their siblings more than them.
Litigation may also happen if there are questions about why the bequests are unequal. One sibling may accuse another of writing a fraudulent will or using undue influence to alter the estate plan, for example. Parents who use unequal bequests should be very clear about why they are doing so. Being vague or providing no direction increases the odds of a dispute.
When siblings do find themselves involved in estate disputes, it can be very complex, and they need to know about all of their legal options during litigation.
